Wilmar International recorded its biggest stock decline in nearly six years after the Indonesian government named the company in an investigation into alleged export violations involving crude palm oil exports (28/05).

Shares traded in Singapore fell as much as 11% on Thursday, marking the largest intraday decline since 2020. The stock later reduced some losses and traded at S$3.45 per share at 09:45 local time.

Indonesia Investigates Palm Oil Producers Over Export Practices

Indonesia is investigating 10 palm oil producers over allegations related to under-invoicing and transfer pricing in export activities. Finance Minister Purbaya Yudhi Sadewa said Wilmar and Musim Mas Group are among the companies being investigated.

The allegations are linked to export practices involving crude palm oil shipments from Indonesia.

Wilmar Trading Volume Jumps Amid Market Selloff

Trading activity in Wilmar shares increased sharply following the investigation announcement. The company’s trading volume surged to nine times its 20-day average of 78,988 shares.

Wilmar is the world’s largest palm oil processor and owns plantation assets in Indonesia.

Prabowo Pushes Greater State Control Over Commodity Exports

Last week, President Prabowo Subianto said the government would take greater control over commodity exports through a newly formed state-owned enterprise.

Prabowo mentioned practices such as under-invoicing and transfer pricing as part of the reasons behind the government’s policy direction.

PHOTO: BT FILE/BUSINESS TIMES

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